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Mealey's Insurance - 9th Circuit Panel Upholds Court's Bad Faith Ruling In Auto Coverage Suit

PASADENA, Calif. - A federal district court did not err in denying an insurer's motion for judgment as a matter of law on an insurance bad faith claim because a reasonable jury could have determined that the insurer had a reasonable opportunity to settle the claims against its insured, a Ninth Circuit...

Mealey's Insurance - 'Insured Vs. Insured' Exclusion Bars Coverage For Trustee's Breach Of Fiduciary Suit

CINCINNATI - A majority of the Sixth Circuit U.S. Court of Appeals on June 20 held that a management liability insurance policy's "insured-versus-insured" exclusion bars coverage for a liquidation trustee's $18.8 million breach of fiduciary lawsuit against officers of the bankrupt holding...

Mealey's Insurance - Judge Dismisses Insurer, Reinsurer's Negligence Suit For Lack Of Jurisdiction

SCRANTON, Pa. - An insured's presence destroys complete diversity jurisdiction in a negligence lawsuit also involving its subrogated insurer and reinsurer, a Pennsylvania federal judge ruled June 20, dismissing the lawsuit because it cannot proceed without the insured (RAD Manufacturing LLC f/k/a...

Mealey's Insurance - Pre-Existing Condition Provision Barred Claim For Long-Term Disability Benefits

HARRISBURG, Pa. - A Pennsylvania federal judge on June 19 determined that a disability insurer's denial of long-term disability (LTD) benefits was not arbitrary and capricious because the policy included a pre-existing condition exclusion that clearly precluded coverage to the claimant (Yvonne Hilbert...

Mealey's Insurance - Georgia Federal Judge Dismisses 2 Claims Against Broker In Food Contamination Suit

ATLANTA - An insured's breach of contract claim against its insurance broker must be dismissed because the insured, seeking coverage for underlying suits arising out of exposure to hepatitis A from food purchased from the insured, failed to show that a valid contract existed between the parties,...

Mealey's Insurance - New York Appeals Panel: Reinsurer's Loan Was Not A Fraudulent Conveyance

NEW YORK - A reinsurer's loan was not a fraudulent conveyance because a loan advance, regardless of the size of the collateral pledged, is "fair consideration" for the pledge, the First Department New York Supreme Court Appellate Division ruled June 20 (Stillwater Liquidating LLC v. Partner...

Mealey's Insurance - California Appeals Panel Says Issue Of Fact Exists On Insurer's Denial Of Coverage

SANTA ANA, Calif. - The Fourth District California Court of Appeal on June 19 reversed a summary judgment ruling entered in favor of an insurer after determining that a genuine issue of material fact exists as to whether the insurer's refusal to cover an insured's epidural injections for injuries...

Mealey's Insurance - Panel: Insured Vs. Insured Exclusion Bars Directors, Officers Liability Coverage

TRENTON, N.J. - A New Jersey appeals panel on June 21 affirmed a lower court's finding that an insurance policy's insured vs. insured exclusion bars directors and officers liability coverage for underlying counterclaims involving the insured's officers (Michael Abboud v. National Union Fire...

Mealey's Insurance - Judge Grants Insurer's Summary Judgment Motion On Bad Faith Claim

MUSKOGEE, Okla. - An insured failed to show that material issues of fact exist as to whether his insurer acted in bad faith in denying his claim for coverage under the terms of a commercial property insurance policy and, as a result, is not entitled to punitive damages on the bad faith claim, a federal...

Mealey's Insurance - Denial Of Disability Claim Was Reasonable Based On Evidence, Federal Judge Says

DETROIT - A disability insurer did not act arbitrarily and capriciously in denying a claim for disability benefits because the medical evidence supports the denial of benefits and the claimant failed to provide any evidence to rebut the insurer's evidence, a Michigan federal judge said June 20 (Philip...

Mealey's Insurance - Panel Vacates Dismissal Of Insurance Claims, Affirms Dismissal Of Indemnity Claims

NEW ORLEANS - The Fifth Circuit U.S. Court of Appeals on June 21 found that a lower court erred in dismissing insurance claims in a dispute over coverage for a maritime collision in the Gulf of Mexico, vacating the lower court in part and remanding for the court to review the insurance policies and determine...

Mealey's Insurance - Insurer Opposes Umpire In Reinsurance Arbitration Dispute With Syndicates

BOSTON - In a dispute over environmental claims, an insurer argues in a June 21 brief filed in a Massachusetts federal court that it should not be forced to accept an umpire proposed by a group of insurance syndicates in arbitration because of "shenanigans" in the appointment process (Certain...

Mealey's Insurance - No Coverage For Insured's Deliberate Acts Of Unprotected Sex, 9th Circuit Affirms

SAN FRANCISCO - The Ninth Circuit U.S. Court of Appeals on affirmed a lower federal court's ruling that a homeowners insurer has no duty to defend its insured against underlying claims of battery, sexual battery, fraud, intentional infliction of emotional distress, negligence and negligent infliction...

Mealey's Insurance - Panel: Court Did Not Err In Dismissing Bad Faith Claim In Coverage Dispute

SAN FRANCISCO - A federal district court did not err in granting an insurer's motion for summary judgment on an insured's claim for insurance bad faith because the insured failed to plead any genuine issues of material facts to support the claim, a Ninth Circuit U.S. Court of Appeals panel ruled...

Mealey's Insurance - Panel: Pollution Exclusion Bars Environmental Damage Claim With Insolvent Insurer

NEW YORK - A pollution exclusion precludes coverage for an environmental damage claim with an insolvent insurer, the First Department New York Supreme Court Appellate Division affirmed June 22 (In re Midland Insurance Co.; ASARCO LLC, v. The Superintendent of Financial Services of the State of New York...

Mealey's Insurance - New York Law Bars Offset For Personal Injury Settlement, Appeals Panel Concludes

NEW YORK - The Second Circuit U.S. Court of Appeals on June 22 reversed a district court's ruling that a disability insurer was entitled to offset a claimant's benefits based on the claimant's settlement of his personal injury claim after determining that New York law bars the disability...

Mealey's Insurance - 3rd Circuit Orders Resentencing Of Ambulance Transportation Company, Owner

PHILADELPHIA - A 2-1 panel of the Third Circuit U.S. Court of Appeals on June 21 ordered a federal judge in Pennsylvania to resentence the owner of an ambulance transportation company who pleaded guilty to health care fraud for submitting bills to Medicare for patients who did not need ambulance services...

Mealey's Insurance - Judge: Foreign Specialty Reinsurance Must Pay $926,000 In Attorney Fees

NEW YORK - A New York federal bankruptcy judge ruled June 22 that a foreign specialty reinsurance company owes a defunct company $926,000 in attorney fees for its failure to get court permission before filing an action to arbitrate a contract dispute in Bermuda (In re: MF Global Holdings Ltd., et al...

Mealey's Insurance - 4th Circuit Panel Says Plan Defendants Are Required To Adopt SSA's Onset Date

RICHMOND, Va. - Because a plan administrator failed to follow a reasoned process in determining a disability claimant's onset date of disability, the plan must adopt the disability onset date determined by the Social Security Administration (SSA), the Fourth Circuit U.S. Court of Appeal said June...

Mealey's Insurance - Majority Finds Excess Professional Insurance Policy Is Ambiguous, Reverses Ruling

CONCORD, N.H. - A majority of the New Hampshire Supreme Court on June 22 reversed and remanded a lower court's ruling in favor of an excess health care professional liability insurer in a coverage dispute arising from a hepatitis C outbreak, finding that the policy's Coverage A is subject to...

Mealey's Insurance - California Federal Judge Denies Motion To Dismiss Counterclaims In Sewage Suit

LOS ANGELES - A California federal judge on June 23 denied a motion to dismiss bad faith counterclaims against an insurer in a coverage dispute arising out of a sewage spill after determining that the counterclaims sufficiently allege facts in support of the claims (Travelers Property Casualty Company...

Mealey's Insurance - Judge Dismisses Insolvent Insurer's Shareholder's Negligence, Fraud Lawsuit

WILMINGTON, Del. - A Delaware federal judge on June 23 declined to exercise supplemental jurisdiction over an insolvent insurer's shareholder's negligence and fraud lawsuit against various individuals involved in the liquidation of the insurance company (Jeffrey Cohen, et al. v. Kathleen Birrane...

Mealey's Insurance - Malpractice Claim Reported Too Late To Trigger Coverage, 6th Circuit Affirms

CINCINNATI - The Sixth Circuit U.S. Court of Appeals on June 27 affirmed a lower federal court's rulings in favor of an insurer and its administrator in a coverage dispute arising from an underlying $275,825.29 legal malpractice judgment against an attorney insured (David C. McCarty, et al. v. National...

Mealey's Insurance - 7th Circuit Says Claim Barred By Failure To Comply With Policy Receipt Provision

CHICAGO - The Seventh Circuit U.S. Court of Appeals on June 27 affirmed a district court's ruling that an insurer has no duty to provide coverage for the contamination of an insured's products because the insured did not execute a storage agreement or possess a warehouse receipt as required by...

Mealey's Insurance - No Coverage Afforded For Home's Foundation Damage, Federal Judge Says

HARTFORD, Conn. - No coverage is afforded for foundation damage to an insured home because no coverage is afforded for collapse or for latent defects under the policy at issue, a Connecticut federal judge said June 26 in granting an insurer's motion for summary judgment (Gueng-Ho Kim et al., v. State...